Members of the Dilnot commission will be "disgusted" if the government shelves their recommendations for a shakeup of the system of care funding, a commission member warned as the plans were published.

Dame Jo Williams, one of three members of the commission, said: "It's time for action. It seems to us that people have already waited for change far too long and want more than talk now."

The report is designed to alleviate people's fears of losing their savings and homes. Williams said, if ministers kicked it into the long grass, the commission would certainly be disappointed. "But 'disappointment' is not an adequate word; 'disgusted' comes to mind. But 'disgusted of the Dilnot commission', we hope not to be," she said.

The commission's report calls, as widely expected, for a cap of £35,000 on the amount an individual would have to pay on their own care costs during their lifetime. Above that level, the state would pay a standard rate for care, regardless of the individual's wealth.

People would still be liable for costs of accommodation and food in a care home, but this would be capped at £10,000 a year.

In addition, the commission is calling for a big increase in the threshold of savings and assets above which the state offers no help with care costs. The limit should rise from £23,250 to £100,000, it says.

Taken together, these two central recommendations of the report would ensure that no individual would have to spend more than 30% of their wealth on care. At present, many people are at risk of losing 90% of their savings and assets.

Andrew Dilnot, the economist who led the commission, said the existing funding system was confusing, unfair and unsustainable. The proposals for change would cost the government an initial £1.7bn a year – 0.25% of total public spending – which was "a price well worth paying".

Although the commission wished to see its proposals implemented "with pace", Dilnot said, it did not expect immediate acceptance by ministers and would be content if a white paper appeared before next Easter with a view to implementation in 2014.

Downing Street rejected suggestions that the commission's report had been "dead on arrival" and would now simply be shelved by ministers.

"The prime minister welcomes the report," a No 10 spokeswoman said. "This whole area is complex, as well as multifaceted. Certainly, the whole funding issue is not something that can be looked at in isolation.

"We have always said there is a price tag, but we are not going to back away from the issue."

The Department of Health said it had approached shadow health secretary John Healey's office last week "in order to initiate a conversation between all three parties on social care funding reform".

The recommendations were largely welcomed by charities and welfare groups.

Michelle Mitchell, charity director at Age UK, the biggest older people's charity, said the report set out "a clear blueprint" for sustainable reform. Production of a white paper by next spring was ambitious but achievable, Mitchell said. But she warned: "Delay beyond Easter would be indefensible."

Mark Goldring, chief executive of learning disability charity Mencap, said: "Now is the time for monumental change and it is vital that the government does not bury social care reform."

The Dilnot report's key recommendations

• A cap of £35,000 on lifetime individual liability for care costs.

• Food and accommodation costs not capped, but liability limited to £10,000 a year.

• Assets threshold for cut-off of state support raised from £23,250 to £100,000.

• New national eligibility criteria for state support, set no higher than current definition of "substantial" needs.

• Free care for life for all disabled children and anyone developing eligible care needs by the age of 40.